DALLAS-Sweetened by a retention package from the City of Dallas and tenant improvement dollars, Multi-Packaging Solutions has decided to stay in its existing manufacturing and office space. The company inked a seven-year renewal for 96,660 square feet at 13465 Jupiter Rd., a single-tenant building where it has been a tenant since 1996.
“Multi-Packaging Solutions has had a strong presence in the Dallas market going all the way back to when they were Great Western Industries,” says Santee Hathaway of Jackson-Cooksey. He and Trace Elrod represented Multi-Packaging Solutions in the lease negotiations. The landlord, New York City-based ING Clarion was represented by Jake Marks of CBRE’s local office.
The company employs 212 people at its Dallas location, which includes 20,000 square feet of office space. Its existing five-year lease was seven months out from expiration when it began shopping the market, Hathaway notes.
“We initially engaged the city of Dallas and the current landlord in discussion and focused our search on northeast and north Dallas,” Hathaway tells GlobeSt., adding that there were two options that were strong competitors to the current location. “Over the years, Multi-Packaging Solutions has made significant capital improvements to the building, and one factor with looking at a new facility was recreating the improvements and the downtime associated with the move.”
Another factor was Multi-Packaging Solutions’ desire to streamline its production lines and add more machinery. The company needed money to do that, and part of the lease negotiations called for tenant improvement dollars to help it update its manufacturing process, Hathaway says.
Hathaway notes that ING Clarion was eager to keep Multi-Packaging Solutions in its building. “This space would sit dark for a while if they left because it’s not a distribution-friendly building,” he explains. “The economics of the new deal were more aggressive than the one they secured five years ago.”
As part of the lease renewal, Multi-Packaging Solutions received a tenant improvement package and rent abatements, along with tax abatements and cash incentives from the city of Dallas. “People thought we were wasting our time in approaching the city because it’s rare to get a retention package, but the message we received from the City is that it doesn’t want to be known as the city that doesn’t consider retention packages,” Hathaway says.
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